Purchasing an electric vehicle (EV) is a great way to save on power and maintenance costs while also contributing to a cleaner environment. The Inflation Reduction Act (IRA) implemented tax credits for clean vehicles with incentives for purchasing new or used clean vehicles, which include EVs, plug-in hybrid vehicles, fuel cell vehicles, and charging equipment. These tax credits expire this year, on September 30, 2025, so those looking to take advantage need to take action soon.

There are various requirements for the credit depending on the type of vehicle purchased, where the vehicle was assembled, and where the charging installation is located. There are also income restrictions for both used and clean vehicle purchases.

To qualify for the tax credit for new clean vehicle purchases, your modified adjusted gross income (MAGI) for the current or prior year must be $300,000 or less (if you file taxes jointly), $225,000 or less (if you file taxes as the head of a household), or $150,000 or less (for other filers). The credit offers up to $7,500 for those who buy qualified, new clean vehicles.

To qualify for used clean vehicle purchases, your MAGI must be $150,000 or less (if you file taxes jointly), $112,500 or less (if you file taxes as the head of a household), or $75,000 or less (for other filers). Individuals who buy qualified, previously owned clean vehicles are eligible to receive up to $4,000 in credits.

Learn more about qualifying vehicles and restrictions here.

Duke Energy also has several programs aimed to offset EV charging infrastructure to ease the transition to owning an EV. In North Carolina, the Charger Prep Credit program reimburses up to $1,117 per charger for residential addresses. This can go towards new electric plug-in outlets, electrical wiring improvements, and other technology used for Level 2 or higher EV chargers. EV charger hardware, hardware mounting and commissioning, and pulling permits and fees are not costs that qualify for the credit. For businesses, the Charger Prep Credit provides a one-time credit for organizations that prepare to install an EV charger. The same components that do and do not qualify for residential homes also do not apply to the business credit. However, the credit can be used for commercial buildings including workplaces, businesses, multifamily dwellings, transit stations and schools.

Customers in North Carolina are eligible to rent a residential Level 2 EV charger for 36 months through Duke Energy’s Charger Solution program. This program covers the EV charger and installation, maintenance for the charger within the 36 month period, and charger warranty while enrolled. Costs related to the preparation of the site and electricity use are not covered by the program. Learn more about leasing a residential charger here. This program is also available to businesses, and allows organizations to lease a Level 2 charger for four years and seven years for Fast Charge. The EV charger, installation, maintenance, network access, and repair costs are all covered under the Charger Solution Program. Like the residential program, the site preparation and electricity costs are not covered. Learn how to enroll in the program as a business.

Another Duke Energy credit is available for commercial homebuilders, called the Homebuilder Charger Prep Credit. Homebuilders are eligible to receive a $150 credit for each newly constructed home that includes EV charging infrastructure. Read the eligibility requirements here.

For individuals, some credit unions like Self Help Credit Union (SHCU) offer special rate discounts for individuals wanting to purchase an EV. SHCU members are able to get a .25% discount on EVs or plug-in hybrid EVs. In some cases, members with incomes below the 80% area median income can qualify for a larger rate discount. SHCU also provides EV loans up to $75,000. The maximum loan term is 84 months, and the funds can go towards the installation and purchase of a home EV charger. Visit SHCU’s website to learn more about applying for an EV loan or discount.

Purchasing a used EV is also a great way to save money. Kelley Blue Book offers tips on what to consider before buying a used EV, see their advice here. EVs can also be compared on the site, by selecting the year, make, model, and style.

PlugStar, by Plug In America, is another useful resource for those looking to purchase an EV. Individuals can browse EVs, find local incentives, and locate dealers on the website. They also include an “EV Learning Center”, that includes the benefits of driving electrics, the basics of EV charging, an explanation of incentives, and tips for traveling long distances in an EV.

The NC Clean Energy Technology Center also has resources available to the public that can be accessed at learnaboutevs.org. The site houses resources about the types and charging levels of EVs, and includes links to external websites that dive into EV incentives, alternative fuel vehicles, and coalitions that are working to drive the transition to clean transportation solutions.

Whether you’re an individual or a business, be sure to utilize the available resources and programs to ease the process of purchasing an EV. The IRA clean vehicle tax credits expire on September 30, 2025, so now is the time to buy if you’re looking for an affordable way to travel while also contributing to a cleaner environment.